StockMarketWire.com - Online trading house IG Group Holdings posted a 31% fall in annual profit after revenue was hit by stricter regulations and weaker marekt conditions.

Pre-tax profit for the year through May declined to £194.3m, down from £280.8m on-year.

Net trading revenue sank 16% to £476.9m.

IG held its full-year dividend steady at 43.2p per share.

The company said it was taking action to return to revenue growth in the current financial year, including setting up a new client-facing unit in Germany and a new foreign exchange dealership in the US.

IG said it expected to hold its dividend steady until its earnings picture improved.

The forecast revenue growth was expected to be delivered in the second half of the year, as the first quarter of last year was only partly impacted by the implementation of tighter regulations.

Operating expenses in the current financial year, excluding variable remuneration, were expected to rise by around £30m, largely owing to prospect acquisition costs and marketing.

'IG will continue to lead the way in the industry,' the company said.

'The group has articulated its strategy to position the business so that it will continue to deliver for its clients, its shareholders and its other stakeholders, with clear medium-term financial targets.'

'The board reiterates that it expects to maintain the 43.2p per share annual dividend until the group's earnings allow the company to resume progressive dividends.'





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